Earnings Alert: Home Depot Set to Release Q3 Results
On November 12, Home Depot, Inc. (NYSE:HD) will unveil its third-quarter earnings before the market opens. Analysts predict the Atlanta-based retailer will report quarterly earnings of $3.64 per share, a slight decline from $3.81 per share in the same period last year.
Revenue Projections and Upgraded Ratings
According to data from Benzinga Pro, Home Depot is expected to report quarterly revenue of $39.17 billion. Recently, Telsey Advisory Group analyst Joseph Feldman upgraded the rating for Home Depot from Market Perform to Outperform and raised the price target from $360 to $455.
Dividend Income Opportunities
With the buzz surrounding Home Depot’s upcoming earnings, investors may be eyeing potential gains from the company’s dividends. Home Depot currently offers an annual dividend yield of 2.22%, translating to a quarterly dividend amount of $2.25 per share ($9.00 a year).
Calculating Monthly Dividend Income
To earn $500 monthly from Home Depot, we need to calculate the required number of shares. Assuming a yearly target of $6,000 ($500 x 12 months), we divide this amount by Home Depot’s $9.00 dividend: $6,000 / $9.00 = 667 shares. This means an investor would need to own approximately $270,735 worth of Home Depot stock to generate a monthly dividend income of $500.
A More Conservative Approach
For a more modest goal of $100 monthly ($1,200 annually), we follow the same calculation: $1,200 / $9.00 = 133 shares, or $53,985 to generate a monthly dividend income of $100.
Understanding Dividend Yield
It’s essential to note that dividend yield can fluctuate over time, influenced by changes in the dividend payment and stock price. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
HD Price Action
Shares of Home Depot gained 1.6% to close at $405.90 on Friday, setting the stage for the upcoming earnings release.
Leave a Reply